He's basing it off of his ADJUSTED gross income, meaning he probably jobbed the system legally to get his AGI as low as he could to pay as little as he could. Seems Trump was correct

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He's intentionally avoided paying a dividend for 60 years to avoid paying any taxes. Unlike gates, unlike Phil knight, unlike Sam Walton who paid all dividends and taxes for 20 years minimum. He's sold no stock and only has given it away. He's taken a moderate salary and instead took it in stock. No billionaire ever has paid less of his net worth in taxes than warren Buffett and it's not even close. And btw he used to be upfront and openly bragged about screwing the American tax payer and now he is some sort of advocate? Hilarious

1. Do you really think he invests his billions as an individual? No, it's mostly in Berkshire Hathaway. Literally 99% of his wealth is in that company. The corporation pays any taxes due on its profits, not Buffet on his own personal tax return. So he can claim this and that about how he doesn't take deductions.

This is how rich people blow smoke up the asses of the financially illiterate. He showed you the summary of his personal tax return, not that of Berkshire Hathaway. Which is where the millions in carryforward losses are that Trump was speaking of.

2. Stock gains and losses are only taxable when they are REALIZED. This means if his corporation held $1B in stocks and the value fell to $500M in 2009, but he didn't sell them, he had no REALIZED loss to carry forward. You don't pay tax on the market value of securities every year, only when you sell them for a profit.

3. Well guess what? Warren Buffet has NEVER SOLD A SINGLE SHARE OF BERKSHIRE HATHAWAY. When he makes charitable contributions, he does so with BH stock, which means it isn't taxable even though it's soared in value. You don't pay income taxes on stocks you never sell. He has donated billions to charity over the years, especially after he got really old. He lives frugally, in a house he paid $31,000 for. To guys like this, money is for keeping score, not spending. So he doesn't want to sell anything and incur tax liability. His paltry $11.5M income in 2015 was from his playing around money. 1% of his wealth.

5. He lives on a $100,000 base salary from Berkshire and probably dividends and capital gains from his (relatively) small personal portfolio. When you're this rich 1% of your wealth is about $650 million.

6. Who pays the tax? Well, this clever bastard is not selling stock because he doesn't need to. His heirs will inherit the stock. Guess what? When you inherit stock, the "tax basis" is adjusted to the fair market value at the time of death. So, instead of paying income taxes on tens of billions of profits on his stock over the years, they will pay nothing, as the basis is adjusted to today's price. Imagine what puny amount those shares were worth when he started? His profit on Berkshire Hathaway stock since 1964? 700,000%. This is a tax dodge that puts Trump to shame. He will avoid more in taxes than Trump has ever earned in his life. And his estate is almost certainly sheltered from many estate taxes via complicated trusts and such that he probably spent millions setting up. To avoid paying taxes. Legally.

He may use it to donate to charity instead of the Federal government, but it's still avoiding (legally) tax.

He's also probably "right" about stock picks due to his political and FED contacts as much as any knowledge of how companies work.

This is the same guy who claimed his secretary paid a higher percentage in tax than he did, using semantical slight of hand to fool rubes who don't realize that he pays income tax on dividends, capital gains, and tax free municipal bonds taxed at a special low rates, not ordinary wage income, which is taxed at marginal rates up in the 30's if you're the secretary to a billionaire.

I let my neighbor run 8 head of cattle on my land from Febuary through August. It gives me a hell of an agricultural tax break. It's totally legal, but questionable. Am I a cheat, or smart? Anyone who pisses and moans about people trying to find tax breaks don't pay enough in taxes!